#financial results #Bermuda #Hamilton #Paratus Energy #Q4 2024

Paratus Energy Services Reports Impressive Q4 2024 Results

Paratus Energy Services Ltd. (PLSV), headquartered in Hamilton, Bermuda, disclosed its operational and financial outcomes for the fourth quarter of 2024, highlighting a robust performance marked by $109 million in revenues and an adjusted EBITDA of $63 million. As the company closed out the year, it reported $99 million in cash and a net debt figure of $677 million.

In an effort to underscore its financial health and dedication to shareholder value, Paratus's Board has declared a quarterly cash distribution of $0.22 per share for the fourth quarter. This consistent dividend illustrates the company’s commitment to delivering long-term value to its shareholders and aligns with their strategy of rewarding investors amid positive financial performance.

In conjunction with this, Paratus has also initiated a $20 million share buyback program effective immediately, as part of a larger authorization allowing for up to $100 million in share repurchases. According to CEO Robert Jensen, “2024 was a very strong year for Paratus, and we are poised to continue this momentum moving into 2025.”

Key Highlights and Developments

Among the opportune highlights from Q4 2024 and overall results for the year are multiple significant accomplishments:

• - The successful transition from its previous management within Seadrill, establishing Paratus as an independent operational entity.
• - A successful refinancing effort in the Nordic bond market, increasing the financial package to $500 million from an initial $300 million.
• - Completion of an IPO that raised $75 million, significantly oversubscribed, and an uplisting to the Euronext Oslo Børs in November 2024.
• - Commitment of $12 million towards a strategic acquisition transaction with Archer, anticipated to generate cash returns in 2025.
• - Securing $2.1 billion in new backlog contracts across six vessels in the Seagems segment, reflecting positive market stability.
• - A reported utilization rate of nearly 99%, with FY 2024 revenue growth of 5%, reaching $452 million, while EBITDA grew by 8% to $252 million.

The strategic initiatives and sound fiscal management by Paratus placed them in a prime position to capitalize on future market opportunities. In fact, with all 11 of their assets under contract, a majority locked in until 2026 and beyond, the organization appeals positively to investors looking for reliability and growth.

Fontis Overview

In addition to Paratus's successes, the subsidiary Fontis reported total revenues of $54 million in Q4, though it indicated lower performance compared to Q3 2024, and an adjusted EBITDA of $28 million. Despite a stronger performance earlier in 2024, Fontis faces a challenging market landscape with expectations of reduced average day rates moving into 2025. The company revealed that it has entered agreements to facilitate timely payments for $209 million of outstanding invoices from its Mexican client, enhancing cash flow stability across operations.

Future Outlook

Moving forward, Paratus Energy Services aims to sustain its current strategy centered on expanding its market position while focusing on maintaining liquidity and strong financial health. As it further develops its contract portfolios and explores new opportunities, both Paratus and its related entities look positioned not only for recovery but also for explore new pathways of profitability amidst evolving market conditions. As highlighted by Jensen, the fundamentals are in place for continued positive trajectory through 2025 and beyond, which excites both stakeholders and investors alike.

Conclusion

The recent achievements and new financial endeavors outlined by Paratus Energy Services prompt optimism not just for the company's future but for investors as well. The ongoing commitment to dividends and share repurchases complements a strong operational performance, positioning Paratus as a significant player in the energy services sector moving forward.